If you are considering selling your Orange County home it is important to know what you can expect in terms of closing costs. As an Orange County real estate agent I usually review customary closing costs with sellers early in the process so there are no surprises. For many homeowners with limited equity, understanding closing costs is extremely important. While many of the closing costs are negotiable, some are not. So let’s have a look at typical closing costs that you will incur when selling an Orange County home.
It is also important to know that both buyers and sellers will have their own respective closing costs. It is always negotiable as to who pays for what – formalized in the purchase agreement. The following is a summary of customary seller closing costs.
- Real Estate Commissions – standard commissions range from 5-6% and are negotiable.
- Escrow Fees – typically a base fee plus 0.15% to 0.2% of the purchase price, plus additional fees for courier, and misc. items.
- Title Insurance – sellers provide buyers with a Sellers Policy guaranteeing clear title to the property. Cost varies with the price of the property.
- Property Taxes – taxes allocated on a prorata basis and applies thru close of escrow.
- Natural Hazard Disclosure Report –legally required for seller to provide to buyer – 3rd party report sharing any natural hazards associated with the property – $100 range.
- Home Warranty Plans – very common for a seller to agree to pay for a one year home warranty if requested by the buyer – $400 range depending on coverage.
- Assessments/Liens – if any exist they must be paid prior to close.
- Homeowner Associations – if home has an HOA seller typically pays for HOA document fees and HOA transfer fees – can range broadly but plan on $400-500.
- State Mandated Retrofitting – sellers may be responsible for required retrofitting such as strapping water heaters, installing smoke and carbon monoxide detectors.
- Deed Recording and Transfer Tax – yes an added fee but you have now closed your sale!
The Orange County real estate market has quickly shifted from a buyer’s market to a seller’s market. Low interest rates and very strong buyer demand has home prices escalating. I would welcome the opportunity to provide you with a free Orange County home evaluation if you are considering selling – I can guarantee you that you will be pleasantly surprised! Be sure to take advantage of my 90 day home sale guarantee where your home sells in 90 days or my listing fee is free.*
David Grbich is the Broker Owner of San Juan Capistrano based Ventana Coastal Properties serving the needs of buyers and sellers throughout Orange County, CA. David can be reached anytime at 949-500-0484.
* Terms and conditions apply.